The Dangote Petroleum Refinery has attributed its recent reduction in petrol prices to a drop in global crude oil prices, saying the change in the international market created room for a downward review, ENigeria Newpaper has learnt.
In its latest pricing update released on Tuesday, the refinery lowered its ex-gantry price of petrol to N1,075 per litre, representing a N100 decrease from the previous rate of N1,175 per litre. It also announced that petrol supplied through coastal distribution channels will now cost N1,050 per litre.
Diesel prices were also adjusted, dropping by N190 from N1,620 per litre to N1,430 per litre, a move expected to ease operational costs for businesses and industries that rely heavily on the product.
According to the refinery, the reduction became possible after global crude oil prices slipped to about $90 per barrel, marking the first notable decline since tensions escalated in the Middle East. The earlier surge in crude prices had forced several upward adjustments in the refinery’s petrol pricing in recent weeks.
ENigeria Newspaper also gathered that the refinery company clarified that the gantry prices announced do not include statutory charges imposed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
Before the latest reduction, petrol prices at the refinery had risen sharply within a short period. The product climbed from N874 per litre on March 2 to N995 per litre on March 7, before increasing again to N1,175 per litre on Monday amid rising global oil prices triggered by the ongoing conflict involving the United States, Iran and Israel.
Meanwhile, the refinery’s Chief Executive Officer, David Bird, had earlier explained that the facility is exposed to global market forces because it sources crude oil based on international benchmarks. He noted that fluctuations in global oil prices would continue to influence the refinery’s pricing decisions.
As a result, the refinery said it was able to adjust its fuel prices downward in line with the changing conditions in the global energy market.
